Australia-Based Crypto Lender Sentenced for False Credit License Claims – The Australian securities regulator recently announced that Helio, a crypto lending platform, admitted to falsely claiming to possess an Australian Credit License (ACL). As a result of their admission, Helio has committed to a “recognisance” of $9,560 (AUD 15,000) for a year, dependent on their good conduct.
Helio, which operates out of Melbourne, breached Australian Consumer Protection Law by making this false claim. The Australian Securities and Investments Commission (ASIC) disclosed on August 17th that the cryptocurrency lender has been sentenced for violating section 30 of Australia’s National Consumer Credit Protection Act 2009.
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The Australian securities regulator released a statement indicating that the assertion of the license was published in an article on Helio’s website in August 2019. The regulator contended that Helio deliberately presented itself as a licensed entity, despite being fully aware that it did not possess an Australian Credit License (ACL).
Commenting on her organization’s punishment of Helio, ASIC Deputy Chair Sarah Court said: “We expect entities and individuals to provide accurate information to their customers and potential customers. Helio falsely claimed that it held an Australian Credit Licence (ACL), misleading their customers to believe that they had the protections afforded by such a licence.”
For admitting to committing the offense, Helio is said to have entered a “recognisance” of $9,560 (AUD15,000) for 12 months which is contingent on the crypto lender’s good behavior. However, the regulator said the second charge relating to the content seen on Helio’s website has since been withdrawn.